How the electricity eco-reduction works

With reference to the letter by John Agius regarding the eligibility to eco reduction (March 6), Enemalta would like to explain how this is worked out. Eco reduction is calculated on the reading of a single actual bill, on a pro-rata basis of the relative annual consumption.

For a single person household, a 25 per cent discount will apply on all consumption per actual bill, if this amounts to less than 2,000 units in a year.

For a two or more person household, subject that annual consumption does not exceed 1,750 units per person, the following discounts will apply:

(1) 25 per cent on the first 1,000 units (per person, per year).

(2) 15 per cent on the remaining 750 units or part thereof (per person per year). For example, in a two-person household, if the average daily consumption is 9.5 units or less, then this household consumes less than the stipulated 1,750 units per person/per year, making it eligible for eco reduction.

An actual reading will only be used once to calculate eligibility for eco reduction.

In Mr Agius's case, he benefitted from the scheme on his first bill (as in this case his consumption fell under the stipulated threshold). However, the reading from his first bill could not be added to his second, because that would mean that he would be benefitting twice on the same actual reading.

In the case of Mr Agius's second bill (when the eco reduction was calculated on his March 2009 to August 2009 bill) his electricity consumption for these 156 days was of 1,527 units (1,527 divided by 156 days = 9.7885 x 365 days = 3,572.8 units), exceeding the pro rata annual limit by 72.8 units and was therefore not eligible for eco reduction.

Enemalta would like to remind its customers that the workings on this scheme will be simplified once Smart Meters are introduced, as it will be much easier for customers to monitor their daily consumption and make arrangements accordingly.